News that the head of Hydro Tasmania won’t renew his contract when it falls due is unsurprising and is an indictment on the Liberals’ management of government businesses.
Shadow Minister for Energy David O’Byrne said Steve Davy leaves the business at a time when it’s under siege from its shareholder ministers.
“What we’ve seen is aggressive raids on the Hydro’s finances at a time when the business needs to be investing in its future.
“Peter Gutwein has used the Hydro like an ATM whenever he’s needed to top up on cash, to the extent that the said the dividend policy was unsustainable.
“It started with $105 million announced in the budget, a further $15 million in September and a ‘special dividend cash grab of $70 million announced in the Revised Estimates Report.
“What CEO could stand by and watch government plunder the business in a way that would result in job cuts, deferred maintenance, or delayed infrastructure investment?
“It’s clearly been the last straw for Steve Davy and the reason he’s walking away from a $640,000 job.”
Mr O’Byrne said Mr Davy’s departure will leave a leadership vacuum at a critical time for the business.
“While we wish Mr Davy well in his next challenge, it remains to be seen who will fill his shoes.
“That person will inherit significant challenges.
“Hydro Tasmania has just emerged from a painful restructure with many jobs shed, it’s still in legal dispute with the owners of the Basslink cable, and the Battery of the Nation initiative is not yet landed.
“This is one of the state’s most important businesses, and largest employers. The next CEO will need to guide Hydro Tasmania through a highly volatile national energy landscape, at the same time as warding off further raids by government.”
David O’Byrne
Shadow Minister for Energy
